Entain highlights strong BetMGM performance in Q4 trading update

Entain has increased its expected full-year 2021 EBITDA results to $1,192m-$1,206m after delivering on its high-growth targets throughout the year.
Image source: Entain

Entain plc has published a Q4 trading report, where it has increased its expected full-year 2021 EBITDA results to be in the range of $1,192m-$1,206m after delivering on its high-growth targets throughout the year.

The global sports betting and gaming entertainment group also cites that FY2021 group net gaming revenues (NGR) will be up 7% on corresponding 2020 results.

Entain noted that its growth is due to a robust performance of its online unit that is expected to deliver a 12% NGR improvement on FY2020 results of $3.7bn – “demonstrating the consistent ability of our operating model to deliver diversified and sustainable growth.”

Online growth was maintained despite a tough end-of-year trading period, as Q4 NGR results of -9% were dragged down by German market regulatory adjustments and strong like-for-like period comparatives. Entain’s online portfolio is expected to report a 25% year-on-year gain in active player numbers.

CEO Jette Nygaard-Andersen commented: “2021 has been a successful and eventful period for Entain, and our market-leading platform has driven another year of strong, sustainable, and diversified growth. All of our major markets have performed well.”

Earlier this week, BetMGM, jointly owned by Entain and MGM Resorts International, provided an update on its 2021 performance and outlook for 2022, informing investors that it expects its FY2022 net revenue to exceed $1.3bn thanks to expansion into new US states and markets.

In FY2021, BetMGM noted it had a “strong financial performance” as net revenue from operations is expected to be approximately $850m, ahead of management expectations and up nearly five times from the previous year. It also expects to deliver positive EBITDA results by 2023.

Within its Q4 update, Entain has stated that BetMGM has been a particular highlight during 2021 where all its major markets have performed well.

Nygaard-Andersen continued: “BetMGM, our hugely exciting business in the US, has been a particular highlight with FY21 net gaming revenue ahead of expectations and an upgraded outlook for 2022.”

“We have also made significant operational progress and have continued to provide our customers with even better content, experiences, and excitement as the worlds of media, entertainment, technology, and gaming converge.

“As ever, our sustainability efforts have been at the core of everything that we do. We have continued to lead the way in the critically important area of player protection, and our technology-based Advanced Responsibility and Care program is progressing well.

“We continue to see significant growth opportunities ahead of us, with a total addressable market of around $160bn across our new and existing markets, as well as in emerging areas of interactive entertainment. We believe these opportunities will enable us to at least treble the size of our business. As a result, we remain confident in our prospects for the year ahead and beyond.”

Russell Pointon, Director at Edison Group, added: “Following a strong performance in Q4 21, Entain’s pre-tax profit for FY21 is anticipated to be in the range of $1192m-$1206m, which is higher than expected.

“Entain’s Q4 net gaming revenue was up by 4% in the period up until 31st December. Retail NGR was particularly strong, it surged by 60%, with an increase in betting activity at its shops as volumes returned to within 10% of pre-pandemic levels.

“In FY21 Entain’s NGR was up by 7% year on year, within which online NGR increased by 12% compared with FY20. There was a slight drop in Retail NGR, which fell by 3% year on year, reflecting the implementation of more Covid-19 restrictions than the year before.

“BetMGM, the Group’s joint venture in the USA with MGM resorts also released positive results yesterday. Highlights included an FY21 NGR of $850m, an increase of almost 5 times compared with the previous year. And for 2022, net revenue from operations of over $1.3bn is expected before reaching positive EBITDA in FY23.”